DEWAR'S
"WHITE
LABEL'
SCOTCH WHISKY
still maintains its pre-war world-wide reputation- high quality real age, and fine flavour.
Bole Agents:
A. S. WATSON & CO., LTD.
WINE AND SPIRIT MERCHANTS,
Alexandra Building.
Phone 616,
-Powell
TELEPHONE 3871
Ltd
FURNITURE.
There is a lasting quality in good design
as well as in good construction, When good
design and good construction are combined
with good material you get furniture
which creates and sustains good reputation.
Our aim is to make such furniture.
The Chias Mail
"TRUTH, JUSTICE, PUBLIC SERVICE"
AFTER THE FIRE.
JAIL FOR MAN WHO STOLE COPPER WIRE.
:
THE CHINA MAIL.”
There was a sequel to the revent destructive Daddell Street fire in Mr. E. W. Hamilton's Court yesterday afternoon, when three Chinese were charged with the lare:ny of a quantity in copper wire from among the debris of the Hongkong Electric company's Cable Stors and Testing Depot.
Two of the defendants were in the permanent employ of the Electric Company, while the other man did odd jobs there.
An assistant storekeeper raid on the morning of August 16 the
three defendants visited the rulaa and proceded to collect a quantity of copper wire, which in spite of Lis protests, they carried away.
Mr. Petley of the Mains Department said they rescued as much of the stores from the ruins as they could, and sorted them out for inspection by the Insurance people, and what was not condamned they removed to the Wanchai Depot.
One of thedefondanta rem wked that it was very'strange that none of the stolen property was produced in Court. An Indian watchman said he raw the defendants leaving the ruins with baskets of wire which they carried up the steps leading to Ice House Street. This man's evidence was contradictory on other points and the Magistrate refused to bleve him or to hear another Indian witness, suggesting that they had never seen the defen
dants at all.
The first defendant said he was sup rintending the work of 20 coalies, aud denied having removed any wire. He admitted however, that a Chinese asked him to have two baskets of rubbish, containing a low bits of wire removed to a barber's shop and he gave the necesary instructions to the coolies.
On his own statement this man war convicted and sentenced to one month's jail. The other two defen- dants were discharged.
AN ARMS CASE.
STICK TO THE CHARGE,
|
TELEPHONE COMMITTEE'S REPORT,
IMPORTANT RECOMMENDATIONS MADE.
RATE FIXING, COMMITTEE PROPOSED.
Committee of the Joint Chambers of Commerce appointed to consider the The Colonial Secretary has forwarded to us a copy of the report of the proposed new agreement with the China and Japan Telephone and Electric Co., Ltd. The report is as follows:- Gentlemen,
This Committee was appointed to investigate the terms of the pro- posed new agreement between the Government and The bins and Japan Telephone and Electric Co., Ltd. Various papers in connection with the telephone negotiations have been supplied us by the Colonial Secretary's Office; and Mr. Parker Ness, Vice-Chairman of the Company, gave his view on the question at a meeting called for that purpose, but he refused to discuss lowering the terms of the licence renewal.
PART I.
Our investigations lead us to the conclusion that the following ten lacte are well established :-
1. The existing licence sxpires January 31st. 1930, until when the Com- pay is under an obligation to provide a good and efficient telephone service, with approved and modern appliances at a charge not exceeding £10 par annum for lines within a radius of 1 mile from any exchange.
2. Na provision is made in the existing licence for continuing the telephone service after January 31st, 1930.
TUESDAY, AUGUST 22, 1922
and 1921, but it is estimated they fest $110,000 in the latter year owing to the net rate boing $73,35 in place of $100. In spite of this fact the Company made £25,000 in Hongkong in 1921. These obligations arising from a disadvantageous exchange would be avoided by a return to a dollar rate equalling $100 and, therefore, any additional rate over $77.42 (£10 at 2/7) mesne additional profit to the Company.
c. They dariva considemble benefit from an extension of their franchise' on favourable terms which enable them to find further employment for much plant which might otherwise be scrapped.
d. Prices have fallen since 31st December, 1921, and stili show signs of falling considerably and it is manifestly unfair to ask the publio to pay no accessively high rate of return upon inflated values arbitrarily, placed on nearly obsolete equiparent.
The assumed charge of 12% per annum for interest, or, Dividend, varien according to the method of arriving at the value of the Plant as the following figures show.
The estimated Construction Coat at 31st December, 1971 of the Coma- pany's Plant is.
12% p.a would be
|te, similar Plant but new.
actual cost per Co's B/Shoot.
£241,068
£115,958 @ 2/6 5027,064 $111,319,
$749,008 $ 89,881
$1,562,873 $187,544
actual cost per Co's B/Sheet if
depreciated at Mr. Cook's rates... £ 93,626 Mr. Cook values the present plant (leas
Depreciation)..
£195,359
Mr. Cole values the prosent plant (less
Depreciation).
£141,894
1
12
11
$1,132,752 $138,930
e. If Mesor. Cook and Cole's valuations had been based on the lines of the National Telephons Company award both would have been much lower. 4. The difference between depreciation used by the Company when
3. The present system is to a great extent obsolete, making the intro duction of some more modern system at an early date desirable, (Note: Mr. Cole's report of 1922 mentions the plant in both exchanges as obsolete.making their valuation and when compiling their estimates of future Also the fact that the system has been changed in Singapore to the Central Battery System and that the Government of India have stipulated (vide expenditure indicates considerable over-valuation of their plant. Mr. Parker Ness) that the magneto system may only be installed in ex- whereas they require over £20,000 per annum to cover future depreciation The Company have only allowed £46,000 depreciation on their plant changes of less than 300 stations and that they have also insisted on an and renewals, which leads one to assume that the plant could only be about Automatic exchange being installed in Bombay at the Company's expense 21 years old. and risk).
4. The Company is prepared to install a more modern system provided their licence is extended, and the rates increased to allow an adequate return on the ospital expenditure involved,
5. Some sort of contiel over the Company's operations is desirable from the Government and Subroribers' point of view. This can be arranged by the present Company obtaining or nominating a majority of local Directors and the keeping of the accounts in Hongkong whilst still retaining their London standing.
The Company's estimated Depreciation is as follows:-
1921.
1922.
1923.
1924.
1925.
1926.
Estimated amount
of Land, Buildinge
Plant and Stores.
.£900,060
£397,000
£478,000
.£538,000
£609,300
..£445,300
Depn. and Replacements
required to justify
$150 mte.
£20,391
6.8%
£24,100 6.07%
£26,380
5.52%
£29,360
5.46%
£31,100
5.11%
£32,707
5.07%
A similar control can be obtained by reconstructing the Company as A local registered Company with a majority of local Directore. This would have saved annually a large sum in Income Tax. (Note: Payments for Lacome Tax, Excess Profit Tax and Corporation Tax have averaged £4800ings than is necessary for the operations of a telephone service of this
magnitude, P.a. during the past 7 years).
5. The Company's valuation contains a larger sum for Land and Build-
The draft agreement provides for the flotation of a new local Company Shat holders of the China and Japan Telephone and Electric Co., Ltd., will 1/2 Peak to take over the Assels and Liabilities of the present Company whereby the Deddell Streat receive shares and. Debentures in the new Company equivalent to the re- valuation of their Plant and other Assets.
Two valuations, one made by Mr. P. D. Cole, A.M.I.E.E., Manager of the Shanghai Mutual Telephone Co., Ltd. on behalf of the Government, and one by the Company's Consulting Engineer Mr. W. W. Cook, M.INST., C.E., M.I.E.E., h.ve been submitted for this purpose,
.0579 sq. It. @ $65
427,636 @ 2/6 £53,484
Kowloon I.L. 519.........8606 dg.lt @
5
60,000 93,380
7,500
4,160
(Cost Price £20,566)
$520,915
£65,114
6. The subscription rates set forth in the Schedule attached to the proposed agreement are too high, and any increase on the present rates 6. Mr. Cole's valuation is based on replacement values supplied by The should be graduated, so that the maximum is reached after the new system China and Japan Telephone and Electric Company, which he stated to be has been introduced. liberal, and capable of reduction in view of a fall in prices. He considers that £210,837 (Plant £141,594, Land and Buildings £50,029 and Stores
PART. III..
We have therefore to make the following recommendations, bearing in
£19,214) represents the present value of the undertaking sold by one owner mind that the Company Lave maintained a telephone service, perhaps neither to another, (with presumably a stasion of licence and powers to increase very efficient, nor up to date, but for some 30 odd years. It was perhaps not
Three Chinese were charged at the Criminal Sessions before the Chief rates). Justice (Sir William Rees Davies) this 7. The Company's valuation of £279,687 (Plant £198,359, Land and remunerative in the earlier years, due possibly to their lack of enterprise, until morning with having been unlawful Buildings £65,114 and Stores £19,914) is, we understand, their idea of a fair the advent of the late Manager Mr. W. L Carter when great development and prosperity took place as the Directors report for 1917 records. Also ly in possession of a revolver and value for the undertaling transferred from one owner to another as a going remembering that the greater portion of the present plant was palobased waiting for the light ars they count ammunition and twa daggers. One concero, (with presumably an extension of licence, and powers to incrcase before the War at less than h It present prices and, therefore, any enhanced on meeting inside. One craft, looming man was charged on another count rates). They have supplied detailed schedules showing how this amount is large and stately against the sunset with hay ng been in unlawful posses arrived at, but refused any information as to the basis on which the schedulesale now sought to be placed upon it should not (in a continuing Company) topsail flying, has the knack of sion of the revolver and ammunition were compiled. From examination of their figures, we infer they estimatai be held to have the effect of increasing rates. Also without losing sight of the fact that but for the Company's own miscalculation very much larger
arly charged in respect of a dagger. December 31st, 1921 and then revalued this according to the age of the plant
The latter who was charged with possession of the revalvor admitted it sad pleaded ignorance of the law, The other two said they knew nothing about either the revolver or the daggers.
Hoxoxoxo, Trey, Acc. 2, 1929. moving where others lag. It is La and each of the other two were simil. tlh cost of reconstructing the present plant at the high prices ruling onprofits would have acarved in recent years owing to their demanding pay-
LYEEMUN PASS.
Cigale, an old winner. Her topsail collects a zephyr we others cannot even feel, and she glides ahead. They ask her owner when be pat an engine
on the "Birking Fund" method of depreciation. The amount deducted for ment in sterling and not in legal local tender. And yet in spite of this over depreciation in this valuation is maoh less than that estimated as necessary £65,000 has been paid away in Dividends and home taxation during the past
Iyears in addition to £40,000 placed to reserve Fand. for the new Company and less than the allowance provided for in the Gov. ernment's draft agreement. Example:--
1114 steel Poles stated to have a physical life of 25 years are estimated To cost £15,047.and after 10 year use are valued at £13,769 which works out at less than 11% per annum whereas under the new agreement the public will be required to find 8% per annum Depreciation.
8. Although there is a difference in estimated values, Mr. Cole and Mr. Cook appear to have agreed to the proposed increased rate viz: $15 for businers and $140 for private telephones in place of the Company's claim of $175.00.
1. That an extension of licence be offered to the present Company provided they undertake to bring their plant up to date and to maintain an efficient service.
2. That rates should be fixed from time to time by a Committee appointed by the Government or Chambers of Commerce.
3. That the following rates for the next five years (subject to revision by the Committee mentioned above) be brought into force from the commencement of the new agreement.
ANNUAL SUBSCRIPTION PAYABLE
MONTHLY IN ADVANCE
With creaks and grants the heavy in her, well knowing be hasn't. They mainis, battened with bamboos, rises demand to know why he sate it going,
Relating the facts of the case to to its hoist. The anchor is lugged out, seeing that there is no hurry, and the jury, the Attorney General said He that the three men were found one the wheel put over. Slowly, moved enough wind will come soon.
night going along the Taipo Road by catapaws, the yacht stands out in-grins as he passes. Others drift, their together. The police ware looking to Hongkong's suas iae seas. The passengers peering up the torpedo for them and they came across them yachtsmen change into deshabille, tubes of the forts, and deciding to near the junction of the Taikokisoi
The Company, however, think the increased rates should start forthwith some even getting into bathing togs at have another meal aboard, if the road,
All of the men resisted arrest and (i a. before the projected improvements have been started) but Mr. Cole sub. once. The vessel reaches the famous evening breezes fail to come in time.
one of them managed to get away-up egoently to the publication by the Company of the proposed new rates aug pass called Lysemoon, where the Even so drifting, Lysemun, the local the hillside but was suberquently gated that they should only start from the completion of the proposed new following catspaws off the Shaukiwanyachtaman's chiefest obstacle and recaptured. A revolver was found switchboard (possibly two or three years, hence).
6. The Company is able with present subscription rates to earn a good hills are rebuffed by a headwind com.irritant, eventually diminishes astern. on one man but nothing was discover ing in from the ocean. Also, there is It is forgotten, till next time. Shore ed on the persons of the others.return on the money invested in the undertaking. In 1921 with a £10 rate Afterwards, however, the police (equal to $73.95) they made a prefit in Hongkong of £23,000 on a paid up * three knot tide coming throug, puffs take us to our several mooringsearched near the plase where the shira Capital of £99,761 and Loan Capital of £12,500, Sampans bound out as we are creep Sunday dinner is habitually late for struggle had taken plate and found 10. During the past 17 years (firet Balance Sheet produced 1905) the tediously inshore, hugging the rocks, Hongkong yachtsmen.
ons dagger there. They found another Company has made £200,000 in Hongkong subject to London Office Er- dagger near the spot where the man penses and Depreciation, The Capital in 1905 was £14,781 and $25,000 was who temporarily evaded srrent had added in 1916 making the presant capital £39,761 on which dividends (free cleared off the road.
of tax) have been paid ameanting to £62,973. The present capital works Larger craft must face it.
The Attorney General was proceed-out to the equivalent of capital put in plus 12% per annum compound is no nee tacking. Before the The Hongkong, Canton and ing to develop the Crown theory that interest (lem dividends paid out). For a "public utility investment" 12% short leg across the strait is done, the Macao Steamboat Company's interim the men were obviously cut on an is above the average and, if the Reserves and carry forward of £60,000 are veel has drifted back an equal dis dividend of one dollar per share is expedition together when the Chief intact, the shareholders may be considered exceedingly fortunate. In effect,
| payable to-day.
Jastics interrupted.
on the plea of forming a local Company, and taking advantage of a virtual tance. The auxiliary engine must be
"I don't think," observed His monopoly the Company are now soeking by a stroke of the pen to farther Extension Bell or Single Switch ised to get through. It is a strenuou
Lordship, that I agree with the increase the valus of the undertaking by £125,000 representing unrealised At the P.W.D. offices yesterday position as you have laid it down to enhanced values of Plant and Land, on which amount the subscribers are to Private Branch Erohaugs Switchboards fight of long duration, and not tilla Kowloon inland lot at Aplin Street, beurs. I quite agree that, suppos. be saddled with 12% interest and ample allowances for Depreciation and per line capacity'. Cape Collinson in well astern is the Bemshaipo, was sold by auction to Mr.ing they are charged with being Reserves. The Subscribers are therefore quite justified in characterising the effect of the flooding tids ignorable in Kwong Baug for $3,000, The area armed with intent, to commit conduct of the Telephone Company as "grasping." light airs. To their various goals go of the piece was 992 square feet. crime than the possession of arms by
hoping for easier water, but even
there it is visibly like a milkace.
It
LOCAL AND GENERAL.
pranging
PART IL
VICTORIA
PRAK KOWLOON
$
Wall or Denk Telephone
94
81
BA
1923
96
*90
06
On application by Company te
Committee who must satisfy themselves the accounts sub-/ mitted and service conditions justify same.
1921
108
108
108
1925
114
114
114
1926
120
120
120
Extension Telephone (Internal) Wall or
Deek...
30
.90
30
According to distance
6
6
Extension Telephone (External).
I
REMOVALS.
Telephone lines and single telephone-
In the same house..
5
4
19
12
12
5
We have carefully examined all the foregoing facts and, allowing for the great disadvantage due to the aberce of the two expert valuers whom we were unable to examine, and to the handicap arising from the fact that the Company either could not, or would not, disclose the Residuary values Emm one house to another.. sad rates of deprcolation employed, our considered opinion in :-----
Extension telephone:
1. The only ground upon which the present agreement with the Company should be amended and extended is the advisability of providing for con- tinuity of service and progressive development of the telephone system.
Private Branch Exchange Switchboards jer
fine capacity..
Kowloon includes the area South of the old boundary line.
the yachts, some to island bays like
one might show a common intent The forthcoming marriage is on
of Big Wave, Shek 0, or Taitam, others
the part
the thros. coating to the noirard. So passess announced of Mr. C. H. Dongles, But the only allegation here is weekend happily; but Sunday even Marjorie Hope Constantine, en route possession of arma,
land surveyor, P.W.D., to Mise that they were unlawfully in ing, howarda sunset, sees them all from Canada by the .s.“ Empress of The Attorney General indicated converging on the Fam again. To Canada"
that he would not press the point. be hote
for dinner, ready
The Chief Justice Yes I think for s ден week's work, the Seven years' jail with hard your had better limit it to the daggers.
2. The proposed now Company, will in effect be the old Company under labour was the sentence awarded to After hearing the evidence the jury a new name, and unless a large number of shares is issued locally, the old Igomun must be passed gain the Chinese pawnshop foki who was decided that all three were guilty and Company will retain the complete control of the new Company. As a matter In all districts not included in the above boundaries the same rates This time the millrace is charged at the Criminal Sessions each of them was sentenced to two of fact in 1931 the Sterling income at new rates would have amounted to apply, with the exception that (until such time as it is economically friendly, a helper rather than a yesterday with having let in a gang years with hard labour.
£120,000 and, if the proposed new rates had been agreed to, so large an in pascticable to open further exchanges) there shall be an extra charge of $00 binderer. The last puff out of Baiwad of robbers and helped them to robbin
creased insome would have resulted as to necessitate little, if any, new capital, por kunum per zonje mile (or part thereof) from the nearent point on the master's shop. Gap has diod away. The new in-olly
| being required.
boundary of the spons mentioned in this Schedule or of any exchange 8. In fixing the value of the Company's holding in the new Company hereafter completed. smooth. The sails bang limp. Hali
"dozen yachts "drift through in Semions yesterday in which. & young gising Chamberling dolls, and the Jura due consideration should be given to the following facts vig
In the case beard at the Criminal diarrhoes, whlab can be controlled something less than the present day sale value of thedertaking would be company, one broadside on one ever Chinese named U Lam Ching to give the prescribed dose after each business.
The existing Company will still retain its whole interest in the stard first. Lege dangling over side, charged with manslaughter arising operation of the howels mom thes swimming clothes still wom, faces out of a row in a Japanese cario shop natural and then exstor oil to closure b. Through demanding and accepting a sterling rate of £19, in place of over the water supply the jury to system. 6 le safe and e016. Brou an old rate of $100 when erebange ruled about 2 in 1905, the Company serks and arms fery with subara, returned a verdict of not guilty the most severe and dangerous cases are lost in reduced income about $86,000 in 1917, $120,000 in 1918 and $181,000 the yachtsmen chaff each other, and the prisoner was discharged.
quickly cured by it. For sale by all 1919. The Company will not supply working account figures for 1920
1.”
TEETHING CHILDREN. Toething children have more or less
rhoos Bernelly,. All that is necessarý in.
Chemists and Btorekeepers.
On the complation of the exchanges at Victoria, Peak, Shaukiwan, Kowloon and Tipo heroof the sunual rates of subdoription and other chargea for subscribers within the areas of such nechanges shall be at the same rate as thons in the abɔvé sobedule mentioned.
That the Company should keep their accounts in soma, form pproved by the Bate Fixing Committee.
(Continued on page 12.)